Royal Caribbean (RCL – Free Report) closed the latest trading day at $179.99, indicating a +0.24% change from the previous session’s end. This move outpaced the S&P 500’s daily loss of 1.57%. Elsewhere, the Dow lost 0.84%, while the tech-heavy Nasdaq lost 2.15%.
The cruise operator’s shares have seen a decrease of 13.36% over the last month, surpassing the Consumer Discretionary sector’s loss of 13.72% and falling behind the S&P 500’s loss of 12.16%.
The investment community will be closely monitoring the performance of Royal Caribbean in its forthcoming earnings report. The company is expected to report EPS of $2.52, up 42.37% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $4 billion, indicating a 7.38% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $14.95 per share and revenue of $17.98 billion, which would represent changes of +26.69% and +9.09%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Royal Caribbean. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.33% higher. Right now, Royal Caribbean possesses a Zacks Rank of #2 (Buy).
With respect to valuation, Royal Caribbean is currently being traded at a Forward P/E ratio of 12.01. This signifies a discount in comparison to the average Forward P/E of 15.55 for its industry.
We can also see that RCL currently has a PEG ratio of 0.61. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. The Leisure and Recreation Services was holding an average PEG ratio of 0.99 at yesterday’s closing price.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 48, positioning it in the top 20% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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